Recently conducted an in-depth study of @FolksFinance, focusing on its Season 2 plans and subsequent roadmap around December 2025 (including major upgrades like xChain V2).

I increasingly believe that Folks Finance has considerable underestimated potential within the Algorand ecosystem and across the entire cross-chain DeFi space. Currently, market attention significantly diverges from its actual product strength and data performance.

Season 1 Review: Approximately 1.5–1.65 million $FOLKS tokens were distributed to over 5770 users, averaging about 300 tokens per person. The participation threshold is very low (as little as 50 $FOLKS or 1 million points). Users can qualify with short-term small transactions, but the reward logic favors long-term active users. The overall design balances fairness and sustainability.

Highlights of Season 2 and future upgrades (based on the latest roadmap):
- Major optimization of the points earning mechanism: Repaying $1 yields 10,000 points; cross-chain/exchange via Router earns 100 points per $1; Algorand flash loans also count toward points, incentivizing deep protocol engagement.
- Accelerated cross-chain expansion: Supports Avalanche, Base, Arbitrum, Sei, and other mainstream chains. Future xChain V2 (planned to launch in H1 2026) will further cover non-EVM ecosystems like Monad, enabling truly native cross-chain lending vaults (no traditional bridging/ wrapping needed).
- Referral system with strong user acquisition leverage: Referrers can earn a long-term 3% points share, creating a sustainable community growth flywheel.
- Strong core data performance (as of recent): The protocol’s total value locked (TVL) remains stable between $80 million and $100 million (Algorand mainnet accounts for the highest share, cross-chain pools continue to grow). Lending market share in Algorand DeFi has maintained over 70% long-term, with nearly zero bad debt and excellent risk control.

$FOLKS Valuation perspective:
- Current FDV fluctuates between $200 million and $500 million (depending on price movements), with a lower circulating market cap.
- Compared to leading lending protocols like Aave, Folks already has competitive advantages in TVL scale, product maturity, cross-chain technology (Chainlink CCIP + other secure bridging solutions). However, there is still several times upside potential in market cap.

Personal optimistic summary:
1. Unique product combination: Lending + Liquid Staking (like xALGO) with compounded yields, relatively scarce across multiple chains, with strong annualized attractiveness;
2. Cross-chain technology barrier: Uses secure, efficient native cross-chain solutions, solving liquidity fragmentation issues. After the launch of xChain V2, it’s expected to push TVL to higher levels (official target $10 billion);
3. Growth catalysts: Season 2 points mechanism + $10–15M incentive plan + potential mobile applications (planned for 2026), which could significantly expand user base and on-chain activity.

Currently, entering at $FOLKS is still relatively early, but if xChain V2 and Season 2 incentives are successfully implemented, user scale and TVL could see a next-level leap. Valuation recovery is just a matter of time.

Interested friends can directly visit or view the real-time dashboard for transparent and very intuitive data.

Looking forward to your thoughts~ @FolksFinance remains optimistic!

#Algorand #DeFi #CrossChain #FolksFinance